In one of my earlier posts, I discussed India’s leap forward in microfinancing medical treatments as a pilot microcredit scheme has started disbursing loans for heart surgery. Although the CSR scene in India is not very different from that of other developing countries, at least one of their state governments is ready to adopt CSR in a more viable manner.

The Government of Karnataka is about to take a landmark decision as it’s drafting a law, which if promulgated, will result in mandatory CSR activities by companies working in the state. This is the same state which started the aforementioned microcredit scheme. The state government has rightfully sensed the double standards of these companies where they were out boasting about their CSR efforts while their employees were working in pathetic conditions.

The state minister for large and medium industries Mr. Murugesh Nirani said,

Some industries regularly shell out part of their profit on society-building like constructing roads, schools, parks or providing drinking water facilities for the village or a locality where the company is situated. As more industries make strides into the state, their involvement on a larger scale is the need of the hour.

Lessons for other countries:

I have to repeat the same mantra. Corporate sector has to get rid of this constriction in thought process when it comes to social responsibility. We appreciate your efforts for the community, if any, but you first have to clean your own house. Once you are done with it, then you should expand your CSR scope and that too in a really ‘responsible’ way.

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